The purpose of accounting is to help parties who are interested in the activities of the business because they’re affected by them – make better business decisions by providing them with financial information.

Accounting consists of measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers. It’s impossible to run an organization or to make sound investment decisions without accurate, timely financial information; it’s the accountant who prepares this information. More important, accountants communicate the meaning of financial information and work with individuals and organizations to help them use financial information to deal with business problems. Getting numbers is the easy part of accounting, particularly since the introduction of the computer. The hard part is analyzing, interpreting, and communicating information – and doing so clearly while effectively interacting with people from all business disciplines.

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Accounting